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Crypto News

Saudi Arabia And Hong Kong Work Together On Tokens And Payments

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

saudi hk

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Bitcoin is “not recognized by legal entities,” the Saudi Central Bank cautioned in 2019, but it hasn’t spoken much more about cryptocurrencies since then.

Increasing financial cooperation with the Kingdom of Saudi Arabia, Hong Kong is focusing on infrastructure agreements for payments and tokenization.

A bilateral meeting between the Hong Kong Monetary Authority (HKMA) and the Saudi Central Bank (SAMA) was held on July 26 in order to improve the integration of financial services between the two nations.

The HKMA and the SAMA covered topics such as financial infrastructure development, open market operations, market connectivity, and sustainable growth as part of their agenda for the meeting. A Memorandum of Understanding (MoU) was also signed by the central banks to encourage conversations on financial innovation.

In a joint announcement, Hong Kong and Saudi Arabia shared their knowledge in tokenization, payment infrastructure, and supervisory technology.

Kingdom of Saudi Arabia and Hong Kong have a lot of room to cooperate in the areas of trade, finance, sustainable development, and fintech, according to HKMA Chief Executive Eddie Yue.

The MoU, according to SAMA governor Ayman Alsayari, would not only support the growth of the relationship between Hong Kong and Saudi Arabia in the present but will also benefit them “in the future.”

Despite the HKMA permitting regular investors to trade crypto, the notification doesn’t mention any cryptocurrency-related cooperative activities. In 2019, the Saudi government merely stated that Bitcoin is “not recognized by legal entities” in the kingdom.

Several interjurisdictional tokenization attempts include Hong Kong. BOCI, the investment bank division of the Bank of China, issued $28 million Ethereum-minted tokenized securities in Hong Kong in mid-June. GS DAP and Hong Kong dollar currency tokens were used in the project.